|Ratcliffe-on-Soar Power Station|
From Industrial Fuels and Power we learn that the UK has invited bidding for a UK-wide power back-up system - the system we need if we are to make a significant increase in wind and solar power.
The UK proposed to create a market-wide power capacity back-up system, operated by National Grid. The system would secure power supply at times of high demand and when generation levels fall from intermittent sources such as solar and wind.
The proposals intend to encourage plant developers to build new stations by offering a market system that seeks to generate stable revenue for operators through capacity auctions worth GBP2.88bn (US$4.44bn) until 2030, reports Reuters.
“The capacity market is designed to ensure sufficient reliable capacity is available to ensure security of electricity supply in times of system stress, for example during a cold, windless period,” the energy ministry said.
Power plant operators can bid to provide capacity through an auction in a given year, which will then commit them to deliver power at times of tight supply margins. If they fail to comply they will face penalties.
The cost of the auction system will be passed on to consumers’ energy bills, but the government expects increases to be 4% lower than a business-as-usual scenario.